Air Canada has announced that it suspends all its financial forecasts for the first quarter and for the year 2019 after the decision of the Canadian security authority to close the country’s airspace to the Boeing 737 MAX aircraft until further notice and Boeing’s decision to suspend Deliveries of this model aircraft to its customers.
The airline, which has 24 aircraft of the 737 MAX 8 among the 184 aircraft that make up its fleet, explained that “in light of the current uncertainty”, suspends all financial forecasts made on February 15 and February 28. with respect to fiscal year 2019.
The forecasts that Air Canada made public in February estimated a gross operating profit margin (Ebitda) of between 19% and 22% and an annual return of invested capital of between 16% and 20% for the period 2019- 2021
However, the company clarifies that the financial forecasts for 2020 and 2021 regarding the Ebitda and the annual return on capital (ROIC), as well as the cash flow during the 2019-2021 period are still fully valid.
Air Canada, the largest airline in Canada, says it continues adapting a contingency plan to address the situation and will provide updates as the situation evolves.